GULFPORT, Miss. (AP) – Harrah’s Entertainment will not rebuild its Grand Casino in Gulfport, but will concentrate on its resort project in Biloxi, company officials said.

Copa Casino, which operated in the shadow of Grand Casino Gulfport for years, will buy the Grand Casino site and rebuild there. Gulfside Casino Partnership owns Copa Casino, which was located on land of the Port of Gulfport before Hurricane Katrina struck on Aug. 29.

“We’re going to build back as fine as anything on the coast,” said Rick Carter, who co-owns the Copa with Terry Green. “We’re going to do whatever is best suited for the property and do whatever the city leaders of Gulfport want us to do.”

Harrah’s is selling all its Gulfport land and buildings to the Copa, including two hotels and real estate along U.S. 90.

The Copa also will acquire the land that Harrah’s leases from the State Port of Gulfport south of U.S. 90, about 14 acres.

The purchase price was not disclosed. The sale is expected to close by the end of the first quarter of 2006.

Las Vegas-based Harrah’s, the world’s largest casino company, operates Grand Casino Biloxi, which was destroyed by the hurricane. It also owns casinos in Tunica County.

The Mississippi Legislature has approved inland casinos along the Gulf Coast north of U.S. 90, but Gulfport Mayor Brent Warr is opposed to putting casinos inland.

On Tuesday, Warr said, “The sales taxes in the city are up and we are not depending upon sales taxes from casinos.”

Anthony Sanfilippo, president of Harrah’s operations in the central United States, said Tuesday that Warr’s opposition was not the reason the company decided to pull out of Gulfport.

Sanfilippo said he recently met with the mayor and he “completely understood” his desire to plan for the future and reassess the city’s strategic plans.

He said Harrah’s will rebuild its Biloxi property from the ground up.

“We are fully committed to this state and are excited about the opportunity to design and develop a first-class resort at our Biloxi site that will complement our substantial entertainment offerings in northwest Mississippi.

“And by selling these assets to our neighbors in Gulfport, we will give the owners of the Copa site the additional space they need to develop an ambitious project of their own. This agreement is a significant step toward the rebuilding of the Mississippi Gulf Coast,” Sanfilippo said.

After its merger with Caesars Entertainment this year, Harrah’s wound up with casinos in Lake Charles, New Orleans, Gulfport and Biloxi. All are closed because of hurricanes Katrina and Rita, but the New Orleans property will reopen in February.

Sanfilippo said Harrah’s employees who worked at the New Orleans property will be given first priority for jobs with the reopening. Harrah’s employees who had worked at the Mississippi Gulf Coast and Lake Charles, La., properties will be given second priority in hiring.